How Apple made more money than ever in the first quarter of 2022

Apple released its results for the first fiscal quarter of 2022, in which it managed to pull in revenue of $123.9 billion, up 11% from last year, and a record profit of $34.9 billion. The company has achieved this incredible feat despite COVID-induced restrictions in many parts of the world, supply chain disruptions and a shortage of semiconductors.

Below is a breakdown of Apple’s tax revenue in the first quarter of 2022 and how it managed to make so much money.

How Apple made so much money during the holiday season

The holiday season is always important for Apple, where its products are usually in high demand. The company is also launching several new products during this period which help to further increase its revenue.

MacBook sales

In the last quarter of 2021, Apple launched Apple Watch Series 7, M1 Pro and M1 Max MacBook Pro models, and AirPods 3, with iPhone 13 series availability expanding to more markets with improved ‘offer. The new MacBooks were groundbreaking products, delivering performance and efficiency never before seen in such a form factor.

The new MacBooks led to a record number of people upgrading them during the quarter. The machines were also popular in China, where Macs generally have low penetration.

Related: 13-inch vs. 14-inch MacBook Pro: Is the M1 Pro chip worth the extra cost?

iPhone Sales

Although it looks like a minor upgrade on paper, the iPhone 13 series has done incredibly well for Apple. The company has seen a record number of customers upgrade to its latest iPhones and double-digit growth in this area. Additionally, the new iPhones have done well in China, with Apple claiming it has the four best-selling phones in urban China. It also had the highest revenue ever in China this quarter.


The iPhone 13 series was among the best-selling smartphones in many parts of the world in the first quarter of 2022, including the United States, Australia, France, Germany and the United Kingdom.

Camera iPhone 13 Pro max

Apple has also been able to manage the semiconductor shortage better than other companies, thanks to close ties with its suppliers. Thus, despite the high demand and the shortage, she was able to have a sufficient stock of her products for the holiday season.

Service growth

Another reason for the company’s excellent Q1 2022 numbers is its services business, which has grown tremendously over the past few years. In the first quarter of 2022 alone, the company generated $19.5 billion in revenue, up 24% from last quarter, with a gross margin of 72.4%. Apple’s services business alone now has 785 million subscribers, a staggering number considering Apple has a global device base of 1.8 billion, up from 1.65 billion in 2021.

put it all together

Apple Logo

Thanks to all of the above factors, Mac, iPhone, wearables and services revenue hit an all-time high in the quarter. Below are the provided numbers displayed by the company on the Apple Newsroom:

  • iPhone: $71.6 billion, up 9.1% year-on-year
  • Services: $19.52 billion, up 23.4% year-on-year
  • Mac: $10.85 billion, up 25% YoY
  • Wearables, Home & Accessories: $14.70 billion, up 13% YoY
  • iPad: $7.2 billion, down 14.3% year-on-year

iPad revenue was impacted in the quarter due to a major supply disruption. Additionally, Apple reportedly moved chips intended for the iPad to iPhone 13 series production during the quarter to ensure its availability was not limited. Despite this, nearly half of customers who purchased an iPad during the quarter were first-time buyers.

With supply chain constraints expected to ease in the current quarter, the company also expects a record Q2 2022.

Apple’s growth is unstoppable

Strong iPhone demand initially fueled Apple’s growth. However, the company has diversified its business over the years, with wearables, Macs and services now attracting impressive numbers.

The service industry alone has grown tremendously and now generates the most revenue after the iPhone, and it will only grow further. The Mac business is expected to continue to see strong growth in 2022 thanks to some impressive Apple silicon products that are in the works.

Photo of Apple Park in California
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